Image Credit: iuemag
Many of us who are new to the cryptocurrency world, may be wondering just how you can get in early on the next big cryptocurrency before it becomes a super star. Well, so am I.
Here is a common feature of the biggest cryptocurrencies right now, apart from having a good technological Base, that can be used as a pointer or clue to pick the next big price coin before it becomes big.
CIRCULATING SUPPLY
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What makes the price of goods and services go up in everyday business environment? Elementary economy teaches that, demand and supply, is one of the key determinant of Price of goods and services. If Supply goes up, Demand comes down and if Demand goes up, Supply would definitely come down or they both come to an equilibrium. If the supply of a particular good or service is so much that it becomes far greater than its demand in the market, the price will fall . This is also applicable to the cryptocurrency universe. A currency with very high supply, would need a lot of demand to force the price up.
So let us look at our precious cryptocurrencies and how supply affects them.
SOME TOP PRICED CRYPTOCURRENCIES AND THEIR CIRCULATING SUPPLY
BITCOIN
Circulating Supply - 16,404,362 BTC
Price - $2200 - $3000
Market Capitalisation: $44,646,083,991
Start Date: 2009
ETHEREUM
Circulating Supply - 92,691,195 ETH
Price - $280 - $400
Market Capitalisation: $31,347,272,531
Start Date: 2015
DASH
Circulating Supply - 7,378,992 DASH
Price - $120 - $210
Market Capitalisation: $1,306,851,985
Start Date: 2014
ZCASH
Circulating Supply - 1,552,444 ZEC
Price - $300 - $410
Market Capitalisation: $581,994,085
Start Date: 2016
BITCOINDARK
Circulating Supply - 1,288,862 BTCD
Price - $59 - $94
Market Capitalisation: $105,444,909
Start Date: 2014
BYTEBALL
Circulating Supply - 255,492 GBYTE
Price - $600- $900
Market Capitalisation: $182,028,028
Start Date: 2017
ZCOIN
Circulating Supply - 2,388,289 XZC
Price - $5- $20
Market Capitalisation: $44,824,654
Start Date: 2017
LITECOIN
Circulating Supply - 51,662,682 LTC
Price - $30 - $50
Market Capitalisation: $2,464,487,229
Start Date: 2011
Let us also look at Cryptocurrencies with high Circulating Supply and their Prices
RIPPLE
Circulating Supply - 38,291,387,790 XRP
Price - $0.21 - $0.3
Market Capitalisation: $11,344,436,295
Start Date: 2013
NEM
Circulating Supply - 8,999,999,999 XEM
Price - $0.12 - $0.18
Market Capitalisation: $1,651,689,000
Start Date: 2015
BITSHARES
Circulating Supply - 2,596,270,000 BTS
Price - $0.2 - $0.3
Market Capitalisation: $810,456,836
Start Date: 2014
BYTECOIN
Circulating Supply - 2,596,270,000 BTS
Price - $0.2 - $0.3
Market Capitalisation: $466,492,521
Start Date: 2014
SUMMARY
As a result of low circulating supply and increased awareness, coins with low circulating supply get bought up easily and as people start holding back supply, it forces prices to go up. There are several other factors like, Marketing, Regulations, Technology and Acceptance etc. However, looking at the Circulating supply of all available cryptocurrencies right now, one can spot this trend of low supply and fast growing price. Market Capitalisation is very important but when looking at its effect on price, Currencies like Ripple and Nem says otherwise. The key point to look out for when buying crytocurrency for investment with a hope of making profit within a short period of time would be CIRCULATING SUPPLY. It is very important to do your research and know the technology and the people behind the coin also.
Disclaimer
This is not a financial advice, what you do and the risk associated with it is entirely up to you. Always remember the risk involved in cryptocurrency investment and invest wisely. Seek out proper financial advice and make money, change the world for good.
I would have done more analysis but have to stop here for now because my laptop battery is going down very fast and i don't have power supply.
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Good post, I think you forgot NAV
Very good blog. I was about to post a similair thread. Buy and hold for the upcoming 3 years and the blockchain market will find it's way. We really need more insights in the market and previous investment results. I really advice people to take a look at: https://www.coincheckup.com I really missed a platform that analyses every single coin in depth but this site gave me all the answers.